Despite relatively low levels of general awareness and knowledge about its applications in the Middle East and North Africa, blockchain technology is rapidly gaining momentum. Whether the region chooses to step up its adoption depends largely on the availability of regulatory frameworks, an enabling ecosystem as well as confidence in the added value and security the technology offers.
New economic activities, cost reduction, transparency and security represent the main benefits encouraging public and private sector organisations to adopt blockchain technology. While many expect it to revolutionise numerous sectors, it is still in its "proof of concept" stage and yet to go mainstream. This is good news for a region where several countries are struck by a prolonged socio-economic impasse, whereby the advent of blockchain could mark a great opportunity to make a noticeable change.
Globally, blockchain is having an impact on major sectors with pilot projects in place to evaluate its feasibility. Nations such as the US, Canada, China, Japan and countries in Western Europe are witnessing impressive growth in blockchain investments.
In an effort to develop a global supply chain platform, enterprise software giant SAP was one of the first few to establish a blockchain consortium comprising firms such as HP, Intel, UPS and Airbus. Today, dozens of such consortiums exist globally, bringing together businesses from various sectors such as banking, transport and hospitality, among others.
Blockchain solutions have yet to expand into a full-blown implementation in the Mena region or even globally. However, our region has begun embracing the transformative technology, which promises a positive impact on local communities and economies.
Blockchain has yet to go mainstream. This is good news for a region where several countries are struck by a socio-economic impasse
The proliferation of blockchain in the region has been mainly seen in crypto, NFTs and the financial services sector. Being an early adopter, the sector is leveraging the technology in banking, remittances, securities and investments.
Vast blockchain spending is expected to focus on manufacturing, retail and professional services sectors in the years to come. IT and business services will also account for the majority of all blockchain spending this year. Other sectors such as food and health care can also benefit from the technology.
Poverty, conflict, unemployment, poor quality of education and scarcity of resources such as electricity are some of the most common socio-economic issues facing a number of countries in the Mena region today. But where there are challenges there are bound to be opportunities as well, and there is little doubt a number of sectors stand to benefit from the so-called Web3 applications.
Governments, for instance, can use blockchain for record keeping, from real estate transactions to student loan disbursements and tracking of humanitarian aid. Such use cases may reduce corruption, fraud and cost by steering away from the obscurity of typical government transactions and paper use. Port authorities around the globe, for instance, have been using the technology to develop tamper-proof methods to track shipments. The goal is to ensure payments reach the right parties, eliminating fraudulent accounts and money laundering.
Corruption is such an all-pervasive problem in several countries in the Middle East, particularly conflict-ridden ones, that, even though donors want to support humanitarian efforts, they are often hesitant to do so, fearing misuse of donations. Blockchain offers donors and philanthropies a high level of transparency about how their contributions are being distributed among beneficiaries. The technology is likely to amplify donations towards various causes, from food and medical supplies to education and infrastructure. In effect, this move could alleviate poverty and improve the quality of life in underprivileged communities.
Another form of corruption is piracy. Anti-piracy organisations and local authorities are working hand-in-glove to crack down on counterfeit music, films and other products. Purchasing songs and music using cryptocurrency could eliminate copyright infringement. As a result, an enabling environment for budding artists could emerge, allowing them to reach their audience directly without bearing the cost of distributors.
Blockchain can also serve as a global platform for patients’ medical records, eliminating the risk of hacking or deletion. A decentralised ledger of medical data may help provide the necessary insights to fight disease, while supporting the allocation of humanitarian aid in war-torn countries.
Land ownership records in our region, too, are vague and susceptible to tampering through bribery. Blockchain allows tracking of land ownership history, verifying registrations and running background checks on payments, title deeds and taxes. In fact, in more developed markets such as the UAE, real estate is being tokenised as a means of trade. Landlords can now issue blockchain-based tokens, which represent the value of their shares in certain assets. In addition, many developers and real estate agencies have started selling land and virtual properties as NFTs.
Another major challenge, particularly in countries suffering from unrest or emerging from it, has been the lack of regular power supply. But with the help of the technology, consumers can share their energy with their neighbours for a fee.
This is a useful option to have not just in unstable environments but in stable ones too, where a consumption model called the "sharing economy" is becoming increasingly popular, particularly among millennials. As the short-term lease of some products and services gradually replaces full ownership by a single person or entity, the use of blockchain can yield positive results for Mena-based businesses and individuals while tackling pollution and saving resources.
A new technology becomes infinitely more important if it can enable financial inclusion. And blockchain has proved to be handy for lenders who want to extend micro-loans to people in disadvantaged communities with no access to banking services. Street vendors, for instance, will need minimal financial support to set up food stalls. The technology allows micro entrepreneurs to borrow money without the need for the thorough credit checks currently required by banks, leading to a reduction in unemployment.
According to the World Bank, 1.7 billion people around the globe are unbanked. But for those living in remote areas or conflict zones, where banks are not present, blockchain can come in handy. The technology also facilitates faster and more cost-efficient transactions such as remittances, which many families across the region rely on to secure a decent living.
Furthermore, consumers can track their foods from farm to counter. Of particular interest to the Middle East, consumers might be able to tell whether the food is Halal-based on food source and preparation methods. They can also verify and ensure various aspects of food security and quality or the source of food contamination.
The potential benefits of the technology, therefore, are amply clear. But in order to perfect it, one needs to be patient.
When a new medicine is produced or an innovative therapy is developed, it undergoes a series of rigorous tests and approvals before being administered to patients. It may take months and even years before tangible benefits materialise. Even the most promising innovations will face obstacles throughout their pilot phase. Blockchain may have emerged nearly 15 years ago. But no different than a groundbreaking medication en route to achieving its full potential, this technology appears to be a promising panacea for a set of socio-economic issues our region is facing.
The specs
Engine: 3.0-litre 6-cyl turbo
Power: 374hp at 5,500-6,500rpm
Torque: 500Nm from 1,900-5,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.5L/100km
Price: from Dh285,000
On sale: from January 2022
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
Baby Driver
Director: Edgar Wright
Starring: Ansel Elgort, Kevin Spacey, Jamie Foxx, Lily James
Three and a half stars
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Matrix Resurrections
Director: Lana Wachowski
Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick
Rating:****
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
